Transgaming has released Cedega 5.0 today. "TransGaming is very excited about the introduction of the new Cedega scheduler which allows for better control over processes and threads under the Linux 2.6 kernels. With pixel shaders 1.4, your games will look more realistic and deliver better graphics quality than ever before. Preliminary FBO support has also been added as an experimental feature for users to try out on their favorite titles. Other improvements to Cedega designed to improve correctness and performance have also been included." Read the release notes.

I don't think so. I think that Cedega shows that there is demand for games on Linux. Not only that, but it shows that people are willing to pay for games on Linux, since Cedega isn't free and you need to buy the games anyway. The more Cedega use there is, the more ROI the game makers will see for making Linux games.